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Option Clauses for Construction Projects


Krimz

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Good morning Wifcon!

While FAR 17.5 does not apply to construction contracts, it does not preclude the use of option clauses in construction contracts.

My CO has a need for an option clause and while 52.217-7 most closely fits the bill, it needs some tweaking.  Their intent was to rename the clause and tweak it to suit their needs, while keeping it substantially the same as the original clause as-written.

Is this something we can do? 

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6 minutes ago, Vern Edwards said:

Yes. Option clauses to add work items are not uncommon in construction contracts. Just create a line item for each optional work item and write a clause about the process of exercising the option.

Thanks, Vern.  That was my understanding, but I wanted to ask the question in case we're going rogue without realizing it.

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1 hour ago, Krimz said:

Good morning Wifcon!

While FAR 17.5 does not apply to construction contracts, it does not preclude the use of option clauses in construction contracts.

My CO has a need for an option clause and while 52.217-7 most closely fits the bill, it needs some tweaking.  Their intent was to rename the clause and tweak it to suit their needs, while keeping it substantially the same as the original clause as-written.

Is this something we can do? 

52.217-7 Option for Increased Quantity-Separately Priced Line Item.

As prescribed in 17.208(e), insert a clause substantially the same as the following:

Option for Increased Quantity-Separately Priced Line Item (Mar 1989)”

Does that generally answer your question??

But, as Vern said, you can write a clause for an option on a construction contract. 

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5 hours ago, policyguy said:

If I understand you correctly what you are seeking to do may be permissible. 

See FAR Subpart 1.4 - Deviations from the FAR, as well as your agency FAR supplement, and local supplement/guidance.

I don't think that would be a deviation. The FAR permits the use of options in construction.

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  • 2 weeks later...
  • 3 weeks later...

So I I had a project where I had similar situation and needed options.

I included FAR 52.217-5 and 52.217-7 into a solicitation to incorporate option CLINs…My logic was: “17.200 Scope of subpart.
This subpart prescribes policies and procedures for the use of option solicitation provisions and contract clauses. Except as provided in agency regulations, this subpart does not apply to contracts for (a) services involving the construction, alteration, or repair (including dredging, excavating, and painting) of buildings, bridges, roads, or other kinds of real property; (b) architect-engineer services; and (c) research and development services. However, it does not preclude the use of options in those contracts.  (Emphasis on the last sentence!!!).

 

My file was “self-inspected” and basically committee hung their hat on:

a)      Except as provided in agency regulations, this subpart does not apply to contracts for (a) services involving the construction, alteration, or repair (including dredging, excavating, and painting) of buildings, bridges, roads, or other kinds of real property; (b) architect-engineer services; and (c) research and development services.

b)      The prescription at 52.217-7 “FAR 17.208(e)”  stating that “Insert a clause…in solicitations and contracts, other than those for services, … 

On the brighter side…I made the news around the squadron…was made a poster boy during squadron training…

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